I have a general partnership with one other person. He owns 35% of the business and I own 65%. However, he spends very little time working on it (he has another full time job), while I spend a lot of time on it.In 2012 we had a loss. It appears that my partner is not allowed to deduct his portion of that because it is a passive loss, which can only be deducted against passive gains/income, which he does not have.My 2012 loss from the partnership would be an active loss, so I can deduct it against other income.However, apparently we can specify any allocation we want for profits and losses from the partnership. So, then it seems we just can allocate 100% of the loss to me and I can deduct it all. But it's strange that there would be this rule if it's so easy to get around it...Am I missing something?Thanks!Jesse
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